S&P Global Ratings upgrades Rafael Advanced Defense Systems credit rating: Israel’s Rafael Advanced Defense Systems Ltd. (Rafael) announced a credit rating upgrade to ‘A’ from S&P Global Ratings, with a stable outlook. This upgrade reflects Rafael’s robust financial health, growing order backlog, and leading position in the defense industry.
S&P Global Ratings noted Rafael’s improved profitability and competitive advantage, crediting the company’s ability to capture customer demand due to its cutting-edge defense solutions. This strong performance is reflected in Rafael’s upgraded business risk profile from ‘fair’ to ‘satisfactory.’
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Yuval Steinitz, Chairman, Rafael Advanced Defense Systems.
Financially, Rafael boasts a solid net cash position, with cash balances projected to exceed $4 billion by 2024. This financial strength is further bolstered by an impressive order backlog exceeding ILS 50 billion (approximately USD 13 billion), representing about three years of revenue. The surge in demand is attributed to rising defense budgets and a global need for advanced defense systems.
The stable outlook from S&P Global Ratings indicates an expectation of continued strong demand for Rafael’s products and services. This is driven by rising government defense budgets, which are anticipated to support Rafael’s order backlog and financial performance over the next two years.
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Commenting on the upgrade, Dr. Yuval Steinitz, Chairman of Rafael, highlighted the achievement despite current challenges. He credited Rafael’s employees for their dedication, especially during wartime, for achieving this significant milestone.
Rafael CEO Yoav Tourgeman emphasized the company’s growth trajectory and financial stability. He pointed to 2023 as a record year for Rafael, marked by technological advancements and strong business activity. Tourgeman attributed this success to Rafael’s commitment to technological innovation and its employees’ unwavering dedication.
Yoav Tourgeman, CEO, Rafael.
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Overall, the credit rating upgrade underscores Rafael’s position as a leading defense company. With a strong financial foundation, growing order backlog, and commitment to innovation, Rafael is well-positioned for continued success.
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